Record first quarter earnings

Transcription

1 Record first quarter earnings DBS Group Holdings 2015 financial results April 27, 2015 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. DBS Bank accepts no liability whatsoever with respect to the use of this document or its contents.

2 Earnings up 10% on year to record (S$m) 15 YoY % record Total income 2, Expenses 1, Profit before allowances record 1, Allowances Net profit record 1, Net profit incl. one-time item 1, Net interest income and non-interest income at new highs Broad-based growth as all business units income reach records Impact on earnings: positive negative 1,269 One-time 136 item 1,033 1, Net profit Net interest income Fee income Other income Expenses SP GP Tax and others 15 Net profit 2

3 Earnings up 35% on quarter (S$m) 15 QoQ % Total income record 2, Expenses 1,181 5 Profit before allowances record 1, Allowances 181 (14) Net profit record 1, Fee and other noninterest income drive earnings growth Business momentum remains healthy 279 Impact on earnings: positive negative , Q14 Net profit Net interest income Fee income Other income Expenses SP GP Tax and others 15 Net profit 3

4 Underlying NIM stable on quarter as higher SGD rates offset by lower average LDR (S$m) 5,569 6,321 Net interest margin (%) ,327 1,382 1,406 1,454 1,488 1,557 1,602 1,674 1, Q 3Q 4Q 2Q 3Q 4Q

5 China trade has declined on lower commodity prices and onshore-offshore rate convergence LCs issued from China into Asia (US$bn) Onshore-offshore RMB interest rate convergence (%) CNY 6m Shibor CNH 6m swap Jul Aug Sep Oct Nov Dec Jan Feb Mar Source: SWIFT, Bloomberg 2015 Jul Aug Sep Oct Nov Dec Jan Feb Mar

6 Underlying loans stable on quarter as growth in corporate and consumer loans offsets lower trade loans; liquidity remains healthy (S$bn) Change QoQ Change QoQ % % CBG % Fixed deposits % Other IBG % Current accounts % Trade % Savings accounts % Loans Deposits 6

7 Fee income up 10% on year led by higher wealth management and card contributions (S$m) 2,200 Others Investment 1,700 banking Cards 1,200 Loan-related Wealth Management 700 Trade and transaction services Net fee income 2,027 1, Q 3Q 4Q

8 Treasury customer income comparable to year ago (S$m) Customer income / total Treasury income (%) ,071 2, Customer income 1,037 1,137 Other Treasury income 1,034 1, Q 3Q 4Q

9 All business units income at new highs (S$m) 2015 YoY % 4Q QoQ % Institutional Banking 1,350 1, , Consumer Banking / Wealth Management Treasury Others (37) Total 2,736 2, ,

10 Cost-income ratio stable on year (S$m) Cost / income (%) Staff expenses Other expenses ,041 1,054 1,109 1,126 1, Q 3Q 4Q

11 Hong Kong s income rises 7% on year (S$m) 15 YoY % Total income record Expenses Profit before allowances 310 (5) Allowances 28 >100 Net profit 240 (12) Net interest income and annuity fee income drive total income growth Higher expenses to support business growth Impact on earnings: positive negative Net profit Net interest income Fee income Other income Expenses SP GP Others 15 Net profit 11

12 NPL ratio unchanged on quarter at 0.9%, allowance coverage around historical high NPL ratio (%) NPA (S$m) Not overdue <90 days overdue 1.1 2,996 43% 9% 1.0 2,730 31% 12% ,430 2,525 2,513 2,590 16% 18% 21% 24% 15% 10% 11% 18% >90 days overdue 48% 57% 69% 69% 65% 64% Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 SP / loans (bp) 18 Cumulative general and specific allowances as % of: NPA Unsecured NPA

13 Capital ratios remain strong (%) Total Tier Tier Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Common Equity Tier 1 (%) Transitional Pro-forma final RWA (S$bn) Leverage ratio (%)

14 In summary record first quarter earnings Solid start to the year despite slowdown in trade volumes Strong all-round performance attests to resilience of franchise Multiple business engines such as wealth management, transaction services, investment banking and treasury customer flows enable us to capture diverse growth opportunities Well-positioned to continue supporting customers and delivering shareholder returns 14

15 Supplementary slides DBS Group Holdings 4Q financial results February 10, 2015 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. DBS Bank accepts no liability whatsoever with respect to the use of this document or its contents.

16 Earnings up 10% on year (S$m) 2015 YoY % 4Q QoQ % Net interest income 1,690 1, ,674 1 Fee income Trading income (2) 92 >100 Other income Non-interest income 1, Total income 2,736 2, , Staff expenses Other expenses (1) Expenses 1,181 1, ,126 5 Profit before allowances 1,555 1, , General allowances (63) 54 (61) Specific allowances Allowances (14) Net profit 1,133 1, One-time items (31) - NM Net profit incl. one-time items 1,269 1,

17 ROE at 12.2% (%) Q Net interest margin Fee income/total income Non-interest income/total income Cost/income ROE Loan/deposit SP/loans (bp) NPL ratio

18 Overall LDR stable on quarter (S$bn) Loans Deposits Other funding Loan/deposit (%) Group SGD Non-SGD Mar Jun Sep Dec Mar SGD and Non-SGD loan/deposit ratios are based on gross loans. Other funding comprises senior medium term notes, commercial papers, negotiable certificates of deposit and other debt securities 18

19 Non-interest income up 9% on year (S$m) 3,358 3,297 Other fee income Brokerage and investment banking fee income Trading + other income 2,779 1, ,200 1, ,473 1, , , Q 3Q 4Q

20 Cost-income ratio at 43% (S$m) Cost / income (%) Staff expenses Other expenses ,614 3,918 4,330 2,294 2,065 1,888 1,726 1,853 2,036 1,041 1,054 1,109 1,126 1, Q 3Q 4Q

21 Hong Kong s income rises 7% on year Constant-currency terms (S$m) 2015 YoY % YoY % 4Q QoQ % QoQ % Net interest income (4) Non-interest income (7) (13) Total income (1) Expenses (5) Profit before allowances (5) (12) General allowances (4) (6) NM NM Specific allowances >100 > >100 >100 Allowances 28 4 >100 > (10) (12) Net profit (12) (18) Net interest margin (%) Loan growth (%) 3 0 Deposit growth (%)

22 Regional income up 4% on year (S$m) 2015 YoY % 4Q QoQ % Net interest income (4) 307 (7) Non-interest income Total income Expenses (2) Profit before allowances (10) Allowances (30) Net profit (35) 24 >100 Figures for operations outside of Singapore and Hong Kong 22

23 NPAs remain low (S$m) Q NPAs at start of period 2,513 2,525 2,996 New NPAs Upgrades, recoveries and translation 19 (56) (504) Write-offs (173) (229) (174) NPAs at end of period 2,590 2,513 2,730 23

24 Specific allowances stable on quarter (S$m) Add charges for Q New NPLs Existing NPLs Subtract charges for Upgrading Settlements Recoveries Total SP charges for loans SP/loans (bp)

25 AFS duration remains short (S$m) Mar 15 Dec 14 Government securities 26,174 22,436 Less than 3 years 17,737 15,699 3 to 5 years 3,214 1,939 5 to 10 years 4,167 4,249 More than 10 years 1, Supranational, bank and corporate bonds 11,577 11,373 Equities 1,489 1,459 Total 39,240 35,268 AFS reserves Time-banding is based on maturity date from reporting date 25

26 Wealth Management segment Income (S$m) 275 RECORD HIGH % yoy 35% qoq Q14 3Q14 4Q14 15 Total Earning Assets (S$b) % yoy 4% qoq Comprising Treasures, Treasures Private Client and Private Bank Total earning assets at end of period 26

27 SME segment Income (S$m) RECORD HIGH 396 6% yoy 15% qoq Q14 3Q14 4Q income from large corporate banking also at record 27

28 Global transaction services Income (S$m) RECORD HIGH RECORD HIGH 6% yoy 1% qoq 185 Cash/ SFS Trade Q14 3Q14 4Q14 15 Assets (S$b)(a) % yoy 11% qoq Deposits (S$b) % yoy 3% qoq Assets and deposits at end of period (a) Trade assets; includes bank exposures and loans of financial institutions 28

29 Treasury customer flows Income (S$m) % yoy % qoq Q14 3Q14 4Q

30 Record first quarter earnings DBS Group Holdings 2015 financial results April 27, 2015 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. DBS Bank accepts no liability whatsoever with respect to the use of this document or its contents.